Bitcoin has been dropping consistently for the past week and the crypto market has lost over $500 billion following this dip. Like with any crash, there have been the expected calls of \u2018buy the dip\u2019 from investors who believe that the dips are only temporary and that the digital asset will soon recover all of its lost value.<\/p>\n
While this advice is sometimes sound, there is no doubt that there are some drawbacks with it, which could range from adding to a losing position that ends up losing more, to sinking more money in projects that may already be doomed to fail. Veteran trader Peter Brandt has addressed these calls of \u2018buy the dip\u2019, explaining why investors should not follow it.<\/p>\n
Related Reading |\u00a0Melania Trump Congratulates Bitcoin On 13th Anniversary Of Bitcoin Genesis Block<\/a><\/strong><\/em><\/p>\n Famed trader Peter Brandt responded to a tweet from CEO of Vailshire Capital, Jeff Ross, saying that the price dips that are being experienced by bitcoin presented an opportunity for long-term traders to increase their holdings. Brandt\u2019s tweet was vehemently against this school of thought, proposing instead \u201ca sacred trading rule\u201d for investors during times like these.<\/p>\n The veteran trader compared the current movement of bitcoin to the Silver $SI_F of 1980, which had grown to its $50 top after a massive run. It had subsequently sunk to $3.65, leading people to purchase it in the hopes of catching the dip, but the asset ended staying low for more than two decades.<\/p>\n I remember in 1980 people saying the same thing about Silver $SI_F<\/a> after it topped at $50<\/p>\n It then sank to a low of $3.65 and did not start back up for 24 years<\/p>\n Not saying $BTC<\/a> is the same, but a sacred trading rule I have used is never add to a losing trade<\/p>\n — Peter Brandt (@PeterLBrandt) January 7, 2022<\/a><\/p><\/blockquote>\nYou Could Lose More Money<\/h2>\n
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